Israel to Lower Fuel Prices by Half a Shekel

Israeli Minister of Finance Bezalel Smotrich signed an order on Sunday to reduce the fuel excise tax, which will lower the price of a liter of gasoline by half a shekel. The price will drop from 8.27 shekels to 7.77 shekels per liter and is set to take effect at midnight on Sunday. "While fuel prices are soaring around the world, we are ensuring they do not rise in Israel. Israel's economy is breaking records. We will continue to navigate it responsibly," stated the Minister of Finance and Prime Minister. This reduction follows a recent price hike of 52 agorot (half a shekel) that occurred between Wednesday and Thursday nights, bringing the price of a 95-octane unleaded gasoline liter at self-service stations to a record high of 8.27 shekels. The Ministry of Finance had previously received legal counsel confirming no impediment for the minister to approve a gasoline price reduction for the upcoming month. Smotrich had initially intended to implement a 50 agorot per liter reduction for one month, pending public comments. This new reduction is expected to be in addition to a similar reduction approved last month. The recent price increases are attributed to global oil price surges, influenced by tensions with Iran, disruptions in shipping lanes by the Houthis in the Bab al-Mandab strait, and the war between Russia and Ukraine. The Ministry of Energy explained that the price hike was due to a roughly 13% increase in international gasoline prices, coupled with a approximately 3% strengthening of the dollar against the shekel. Last month, the excise tax was reduced by 50 agorot per liter, at an estimated cost of 300 million shekels to the economy.